German fashion brand Hugo Boss has agreed to extend the tenure of its CEO Mark Langer for a further three years after successfully putting the business “back on the road to growth”.
Appointed to the post of CEO from finance chief in May 2016, Langer’s contract will now run until December 2021.
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“We are convinced that he will continue along this path and build a successful future for Hugo Boss,” chairman of the supervisory board Michel Perraudin said.
For fiscal year 2017, Hugo Boss grew currency-adjusted sales by 3%, an increase the firm attributes to sales in the group’s own retail business, which outperformed expectations.
Meanwhile, at EUR491m (US$610m), operating profit remained on a prior year level and was in line with forecasts. The increase in sales was offset by investments in repositioning the Boss and Hugo brands and the digital transformation of the company’s business model. Operating profit was also impacted by a strong Euro in the period.
“We achieved what we set out to do in 2017,” said Langer. “This year, we want to step up the pace of growth. The new Boss and Hugo collections are being very well received by the market. Feedback from the Boss menswear and Boss womenswear presentations in New York was also very positive. Our strategic realignment is taking effect. Thus we are on the right track towards sustainable and profitable growth.”
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By GlobalDataLooking ahead, the company expects sales growth to accelerate in 2018, with an increase in the low to mid single-digit range after currency adjustments. All regions are expected to contribute.
Meanwhile, Hugo Boss said the change in the operating result (EBITDA before special items) in 2018 will “probably” lie in the range of –2% to +2% compared with the prior year.
